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tv   Closing Bell With Maria Bartiromo  CNBC  October 31, 2012 4:00pm-5:00pm EDT

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first hour of "closing bell" as we have a closing bell. [ bell ringing ] and a lot of behind the scenes workers responsible for getting things back up and trading are ringing the bell. here's maria now the second hour. i'll see you tomorrow. back in business, it is 4:00 on wall street. do you know where your money is? hi, everybody, welcome back to "closing bell." i'm maria bartiromo at the new york stock exchange. put this one in the books after hurricane sandy shut down trading for two days. the stock market finished the day nearly unchanged after being back to business. it's the fact they're open that matters, speaks to the resilience of wall street as the city looks to recover from this devastating storm. the dow jones industrial down about ten points, volume not bad. lot of people expected light volume, 700 million shares traded here at the big board alone so wasn't as light as a
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lot of people expected. nasdaq composite lower by 10 points and s&p ticking up about a quarter of a point. it has been an historic day as the markets opened after a two-day shutdown. we get immediate action, elliott warren from kotke and associates, michael gurka of spectrum asset management in chicago. rounding out our coverage as always bob pisani here. elliott, let me kick this off with you and the energy market moves, gasoline on the move today. how was business after the two-day shutdown? >> it was a little choppy today. we saw unleaded gas rally strongly this morning. i think people are keeping an eye on what happens with the bayway refinery in new jersey. the news initially was it won't get started back up for the next week or two and there was some hope it might start up sooner
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and the markets hailed off towards the end of the day. >> the bottom line is people cannot get gasoline all over new jersey, right? i was talking to someone earlier who was saying that the gas guys in one station they were taking advantage and changing the price all over the place. what is this doing to the market? >> well the real problem in new jersey is that there's no electricity so the gas pumps, they could have all the gasoline in the world in the tanks but if they can't get it out of the ground it's not doing anybody any good. it's really a big mess out there. they need utilities to combine with the locals to turn off electricity to clear the trees out of the streets and first get everything running again. if they don't have electricity they're not going to get the gasoline. people are running their houses on generators and the generators will run out of fuel soon. i was talking to one guy he was talking about siphoning gas out of his car and happy he refilled it before the weekend so he could run the generator to keep his house going. it's a big mess. >> gordon you're here from the
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nyse, talking about more travel restrictions in and out of new york. how is that going to impact trading volume and liquidity for the rest of the week in your view? >> it may have impact. if people are going to trade, they're going to trade, and if they're not, they're not. the first day of a new month automatically means less volume than today. you saw the people marking their positions. yeah i think traveling will be difficult but it will start to pick up november 1st or 2nd we'll be light days for us anyway. >> bob you've been tracking some stocks on the move. what have you been looking at closely, what are some of the movers on a day that volume wasn't that bad. lot of people expected light volume. >> volume is good. we're getting the market on closed orders here for the end of the month, we're north of 800 million shares on the floor so we're moving towards the heavy volume day believe it or not, maria. hurricane sandy was bigger impact than people anticipated. the opposite of irene. today we're seeing plays in stock names that have been around for a few days, guys
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ahead of the curve playing last week, take a look at a few of them, hubble makes hardware that's used on the pole lines that's maintained by utilities, that stock is up today, generac makes power generators, big with portable and standby, big play last week, 20% move, beacon roofing up last week, up again today. armstrong world makes flooring, that moved, up 6%. crawford & company provides claims insurance. so that is going to help them out. so these stocks have been around and because people underestimated the impact of the storm, big movers today. >> michael, we've heard it's business as usual for the most part there in chicago. what are you expecting to see as the week goes by? >> well i think what we're going to continue to see is what the market expected today which was liquidity and stability in the markets and also a couple levels that were key in the marketplace, one being 1397 in
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the s&p and more importantly 130 in the euro as we saw the dollar look to have a little weakness early and start to rally back late in the day. the rest of the week i think it will be about jobs and it's really important that the market was able to sustain itself today as a whole with order flows two days in front of a big number like friday and thank god it wasn't today that was the payroll number because we would have seen some of the circuits comment in as far as what you could handle in executability. >> that's a great point. the jobs numbers coming out on friday. so the electronic trading story was the electronic part of the business, gordon? did that connect overall the way you expected? >> yeah, i mean all systems were operational, exchanged a good job getting serviceable. we did have to make some modifications, some things like internet and phone lines were troublesome but we adapt and overcome, that's what we do down here. i think we'll be fine tomorrow, we'll continue to get seamless as we go. >> what are you expecting from
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the jobs numbers in terms of moving the market? elliot any expectations there? do you think that's going to create more volume? >> i mean you know anything's possible, but i don't think that's really the main issue especially after a big event like we just had. i think more people are concerned about supply and demand, more basic than anything else. can we get the assets available to us and things like that >> gentlemen thank you. we appreciate it. direct edge handles 10% of u.s. stock volume and trades about 1 billion shares a day, all done electronically. joining me on the phone to talk about that is direct ed's ceo william o'brien. mr. o'brien good to have you on the program. thanks for joining us. >> thank you, maria. >> talk to us about the trading day today. you say there were no disruptions. >> no, i mean i think it's as fairly normal a day as you can expect under the circumstances. i am just so impressed with the preparation, the dedication and
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the professionalism not only of the direct edge team but the entire industry. it showed today in how smoothly trading was conducted. >> you handle 10% of u.s. stock volume. was it all systems go? >> it was. it was. now our headquarters are in jersey city so we have dedicated, what's called business continuity space to deal with circumstances like this so we operate two stock exchanges and we operate them completely out of our backup space in sicaucus, and from our member's perspective we didn't miss a beat. >> what has the shutdown cost directedge, about $1 million in revenue a day, is that about right? do you have any sense of the expense at this point? >> i think collectively that's about right. i mean it's hard to say because you don't know what trading volume would have been on monday, had we been open which probably would have been pretty minimal, but anything i think in the long-term is pretty immaterial. it's really more about making sure that we as an industry are
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back to trading and supporting the needs of investors and i think we're doing that successfully as an industry right now. >> in terms of the cleanup cost, that's the business is just beginning. what about that debate over the need for human capital to run markets in the most efficient way? >> any electronic system will still have humans to operate it. despite the competition, despite the automation, we're still a very connected market structure and i was quite impressed with the cooperation in an unprecedented situation among exchanges, brokerage firms and vendors, it was extraordinary and i'm proud of it. >> bill o'brien good to have you on the program. thanks so much. >> thank you. >> we'll check in soon. stick around, we have a lot more headed your way on this busy edition of "the closing bell." coming up, the floor is now open. [ bell ringing ]
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how did the markets handle the first day back after sandy? maria and our market pros break down all the numbers straight ahead. plus car talk. autos rolling out high octane numbers. will the massive need for cars in the northeast after sandy make for an even better fourth quarter? and the politics of sandy. why government coming to the aid of those hit by the storm is now a rallying cry for bigger, more expensive government. that big debate and a lot more still ahead on "the closing bell." oh, just diagramming this accident with my state farm pocket agent app. you can also get a quote and pay your premium with this thing. i thought state farm didn't have all those apps? where did you hear that? the internet. and you believed it? yeah. they can't put anything on the internet that isn't true. where did you hear that? [ both ] the internet. oh look. here comes my date. i met him on the internet. he's a french model. uh, bonjour. [ male announcer ] state farm. more mobile than ever. get to a better state.
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welcome back. we want to show you some shots of new jersey, one of the hardest hit states as a result of hurricane sandy. president obama in new jersey with governor chris christie touring some of the hardest hit areas of the state. is this brigantine, nng? this is certainly new jersey and we want to show you some of the other pictures if we can and take you back to the president and governor christie to get their statements as they spent the day today touring some of the worst and hardest hit areas
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of jersey. as we wrap up an ugly month meanwhile for wall street, the dow jones industrial average is down better than 3% on the month with the other major indices not faring much better. mandy drury is here with the october losers and a couple winners as well. >> absolutely. here are some great stats dug up by our cnbc crack data team. all three indices are breaking their four-month winning streak, as for the nasdaq 100, quite a lot of ugliness there on track for its worst october since 2008. it was october 2008 when it fell 16%. as for tech and telecom two of the worst performing sector this is month down more than 4%. apple for one is down over 10% for this month, and that is its largest monthly percentage drop maria since november 2008, back in november 2008 it fell 14%. this month as you can see over 10%. as the two best s&p stocks this
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month, we have to look at the winners as well, peabody energy and also netflix believe it or not, up more than 25%, as for gold, it broke its four-month winning streak down about 3% for the month of october. and i'm going to show you this one and this is amazing, really makes the mind bog until terms of the performance we've seen in nation nat gas prices, gained over 72%. tomorrow begins a new month, we'll see what happens then. back to you. >> mandy, thank you so much. mandy drewy with the latest on the markets. for more we bring in keith springer of springer financial advisers and brian piscarowski and doug, thank you for joining us. how did the markets handle the first day back after that two-day shutdown from your standpoint? >> well we had a compressed three days into one, did a fine job. there wasn't much going on.
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i think investors are being neutral going into the election. we had a little bit of a pullback i feel because it's factoring in a romney victory, he said he would get rid of the stimulus, which would not be all the best news for this market, which i think is stimulus addicted. we got the fiscal cliff it's dealing with. for the most part it handled it really well. i'm expecting a good rally after the election after a tough october i would think we'll rally to new highs after the election, but with that earnings, investors have to be careful here and like what we're doing for our clients you need to pare back risk at that point, being wary of what the market will do next which is probably not pretty. >> happy you have your san francisco giants gear on. >> that's right. >> world series parade today, some happy times in the middle of all of this upset. >> yes, the giants are big -- sorry, maria? >> i said nice hat. >> thank you, yes it's a big deal up here in northern
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california, the big parade. i would have loved to have been there. the giants were a bit of a surprise to win the world series but always surprise us on the upside and we're all thrilled and hopefully the 49ers can do it, too. >> brian any surprises for you? october historically tough for the market but this year especially tough. >> remember we're also playing a pare back. you had a 14% run off of the june low. so to see consolidation vis-a-vis the fiscal cliff and election it's no surprise. wells fargo is looking to add to risk assets in the equity markets on pullbacks on the cyclical side, we like consumer discretionary, tech effect, and i think also looking in keeping an eye out in some of the nuances out of the hurricane, for example you look at the home improvement retailers did very well today, the rebuilding process while short term may be an issue for markets over the longer term as seen with katrina
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where you possibly could see better economic growth after this quarter. >> we'll see about that. that's a really important point. doug, only about one-third of the earnings have beaten expectations, lower than average of the past four quarters. is this an indication of what the markets are headed? we've got one month out of the three months for the fourth quarter in the books. what is your expectation for november and december? >> well i think the economy is slowing. that's clear and you know, when you're doing 1% or 2% gdp growth, it's tough to find 10% earnings growth by cutting expenses but ultimately i think the market's priced for that. we're not trading a market that's 20 times earnings, we're in a market that's 12 times earnings. i think expectations are low. if there was a surprise in october for us and it's something we've been hoping for, if you're at riverfront, you're going to see outperformance overseas so for four years the u.s. has kicked the rest of the world's butt, in other words the
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best place to be to put your money has been the s&p 500. we think that's a trend that's getting long in the tooth and we're starting to see finally international, areas of the world outside of the u.s. outperforming and i think that's a trend that could continue and you look at u.s. earnings getting tired, i think we're probably in the very early innings of international earnings starting to perk up. >> that is an important point. gentlemen, thank you very much. >> maria -- >> sorry, one final comment? >> i would like to, maria. i think the lower earnings are a crack in the armor. i'm a little worried here. earnings have been better than expected for four years straight, continuously we've had positive earnings surprises and this is the first time we've had negative surprises. i think this is a crack in the armor, showing the stimulus is starting to wear off that, the economy is slowing and investors need to be careful. >> all right, we'll leave it there. >> we've looked at it -- >> all right, you've got the final word, doug. >> well we've looked at exactly that and the reality is slowdown
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in earnings does not lead to the end of a bull market. it's typical. you get later stages of a bull market earnings will slow but doesn't have to be the end. >> we'll see about that. thanks, gentlemen, see you soon. appreciate your time. >> thanks, maria. >> we want to show you live pictures of the president and governor christie getting ready to make comments after touring the, some of the hardest hit areas of new jersey plus new jersey among the hardest hit states as a result of hurricane sandy. that is brigantine, new jersey, and we'll come back and have president obama and governor christie making comments live from new jersey. we'll take a short break and stay with us on "the closing bell." back in a moment. is
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. that is a live picture of br brigantine, new jersey. we're waiting for live comments from the president and governor. they've toured some of the hardest hit areas of new jersey as a result of hurricane sandy. new jersey one of the hardest hit states in the country, as a result of sandy hitting landfall first in new jersey. so as we await this press conference we will talk more about the cleanup. however, as soon as the president and the governor are
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ready to make those public statements we will certainly take you back to brigantine, new jersey. as the cleanup continues, the biggest airports in new york are struggling to get back on track. courtney reagan is at laguardia in new york where flights are still not getting out at the moment. court? >> that's right, maria. the port authority are still assessing whether or not laguardia can open tomorrow. american airlines employees are planning as if tomorrow will be business as usual, but again, the port authority and the faa have to give the all clear first. and if you take a look at some of this aerial footage shot by the u.s. coast guard this morning you can see the area at laguardia, which is sandwiched by, in between these two bays lots and lots of water here. now the port authority says laguardia does contribute more than $13 billion annually to the economics of both new jersey and new york. that's $37 million a day when the airport is operational.
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so you can be assured that the airport and employees are doing everything they can to get back to business, and if you take a look at the still photo, we just took this picture, there are two american airlines planes parked here at the central terminal at laguardia, and they were not here this morning. now jfk and newark are up and running. however, only about half schedule, at least that's what delta is telling us. they're doing their best to get back up to normal but that traffic just still isn't quite there yet for those planes departing and coming in. maria? >> courtney, thank you so much. we'll keep checking back as the story develops there with you, courtney reagan. insurers under pressure in sandy's destructive wake. i'll be talking with the head of allstate insurance about the massive disaster relief efforts under way, how fast are they paying the claims and what kinds of impacts investors can expect to see on the bottom line. later the government's role in recovering from sandy has
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raised debate whether bigger government is necessarily better. we'll discuss both sides of the argument off of that hot issue in a few minutes. stay with us.
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welcome back. one of the companies reporting earnings today in the thick of
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the recovery from hurricane sandy. tom wilson is ceo of allstate insurance and joins us now exclusively after reporting earnings. what timing, tom. >> hi, maria. how are you? >> i'm doing okay. i want to get to your earnings in a moment but here we are in terms of insurance being on the front center given the fact that so much destruction has occurred. let me talk about andy before we get into the earnings, tom. lot of people wondering what kind of damage we're expecting. how do you see it? >> well, this is a massive storm, maria. there's two things that drive a storm, the damages, one is how big is it and the second is how fast is the wind spin. in this case this storm is just massive. it's about twice the size geographically of katrina, that's the bad news. the good news is that its wind speeds were about two-thirds of what katrina was and that's sort of an exponential impact so there should be a lot less damage but it's much wider spread so there's as you know
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this is just a massive storm and there's a lot of work to be done. >> absolutely. i want to point out we are looking at pictures while you and i chat of brigantine, new jersey, where governor christie and president obama will make comments. i want to make sure our viewers know what we're looking at, along with looking at you. i was talking to a gentleman, bill rudin, leading the recovery effort down here in new york and we were talking about the differences in flood damage as well as other damage. there is a small amount of federal money for flood damage for folks. how much do you cover in terms of flood damage versus other damage relative to what the government is covering? >> well, the first thing maria is if you are a customer, we're out talking to you, trying to figure out what the damage is and what caused it. all of our customers will have a claim adjustment when they come out. we have 1,600 people out there, 24 mobile units advertising, going door to door to find people. we're out there trying to help
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our customers. when it comes to the type of loss, if your car is caught and flooded that's all covered by our policies. the flood insurance is covered by the federal government. so that's the national flood insurance program. we sell those policies to people. we adjust those claims for the federal government, but that's more than a small amount of money. if you bought those policies, you will be covered for flood damage. >> some companies have a big deductible, but if you are damaged as a result of a storm that's named, it's a lot more money, right? >> there is something called the tropical cyclone deductible but i don't believe that will apply in this storm in most of the states. there are a few states it may apply but in this case particularly up in the northeast, it was not a tropical cyclone. it was actually more like a winter storm when you look at the science behind it. and so that is covered. >> we're watching the president and chris christie make their way to the microphone. we'll cut away to that in a
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moment. >> okay. >> how soon will you be able to write these checks, tom? >> we're writing checks and putting people in hotels and things right now. we're helping people get their lives back together immediately. >> can you characterize how big this storm is in terms of the bottom line on allstate, versus other storms? >> i can't speak for just allstate but the industry estimates are of course it's speculative at this point but looks like it could be the fifth biggest hurricane in the history of the united states so it's a large, severe hurricane but in terms of allstate we're well covered. >> and you are putting people up in hotels and trying to answer their claims right away is what you just said. >> we're doing everything we can. we need help contacting loved ones if they need help with water, getting clothes, getting into hotels, we have people go door to door. we do advertising, try to find them. we do everything we can to try to get to our customers because this is what it's all about. this is why you buy allstate insurance because when something like this happens you want
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somebody there on your side and that's what we're trying to do. >> absolutely and obviously this storm is not going to be in the earnings we're about to talk about but how significant a hit is this on your earnings for the next quarter? >> it's way too early to tell. i would say based on the size of this storm, it will be significant, but not material. this is not -- these types of events are in the normal volatility that we and our shareholders expect. >> in terms of your latest earnings that were just out today can you talk to us about the personal property as well as casualty insurance and what drove the quarter? >> yeah, we had a great quarter, made $723 million, a return on equity of 13.6% driven by, one, good results in our auto insurance line, low catastrophes so there weren't a lot of catastrophes last quarter and that bounces around and we continue to have great investment results so operating on all cylinders these days, hitting the four priorities we set out for the year.
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>> i know there are limitations if foeklks live on the water fr the get-go and know that going into it. how much will you be able to cover for folks as a result of this event? are people going to be left with no insurance and have to swallow these expenses themselves? >> well, there will certainly be some people where their house flooded and they didn't purchase flood insurance from the federal government and yes, they will be left uninsured. typically the government comes out and puts some programs up to try to help them rebuild like they have done in florida and louisiana. i don't know what the government and the president will do for new jersey, but it's typical for the government to step in and help these people. that said, if somebody has bought the right kind of protection, the federal government is there. we adjust those claims and help people put their lives back together. >> in terms of putting their lives back together, from the difference between wind damage versus flood damage, you cover wind damage, though, right? i know the flood damage is coming from federal dollars but
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what about wind? >> wind damage is completely covered by your policy, that is, and of course that was one of the issues in katrina was did the house blow over before the tidal wave knocked it over, or did the tidal wave knock it over before the wind came. that's really not an issue in this case. it shouldn't be a big debate. it's easy to tell where people are and wind damage is of course completely covered by your homeowners' insurance so we'll be out there helping people. >> for those folks that are customers of allstate what do you recommend they do at this point if they're facing real losses and damages? >> they should call their local agency, we have local agencies where people will be sleeping at their houses, they come to the office, they should go by the local agency's office, look for our mobile units which drive up and down the street or in local church and school parking lots, find us and we will help you. we advertise for people, so we're only a phone call away and then we have, as i said, about 1,600 people there, plus all of
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our agencies who are there on the ground, helping people and this is really where allstaters shine. we're out there. we know this is what we're in business for and what our customers pay for. >> the guidance you're giving today, what would that be, real quick, given the fact this is a total unknown that just happened in the next quarter. >> the guidance i would say is that the good news is we're very strong, solvent company. we have $20 billion worth of capital and this will not be meaningful in terms of our stability. the other action is we know how to do this. we're good at this, good at taking care of our customers and these are the moments where we shine and should get more royalty out of it and it shows the work we've done over the last five years to reposition our homeowner's business has served us well. we're in the affected areas. we have about 30% to 33% fewer customers today than we did five years ago because while this is unexpected, it's not really a surprise.
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>> all right, we will leave it there. tom, wonderful to have you on the program. thanks very much. >> thank you, maria. >> our viewers are happy with the calming words. we're taking a short break. the president and governor christie are inching their way over to the microphones to give us live commentary there about what they just witnessed, want to hear what the president saw in new jersey. we'll take a short break, as soon as they get to that podium we're back live and take you back to brigantine, new jersey. r he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the market, he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade. or that printing in color had to cost a fortune.
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welcome back. here's governor chris christie with president obama in brigantine, new jersey, let's listen in. >> we have lots of challenges. our challenge is to get back to normalcy so we need to make sure we get power restored as quickly as possible, make sure that people have clean drinking water and waste water treatment plants are working, hospitals are taken care of the way they need to and we get kids back to school. i discussed all those issues today with the president and i'm pleased to report that he has sprung into action immediately to help get us those things while we were in the car riding together. so i want to thank him for that. he has worked incredibly closely with me since before the storm hit. i think this is our sixth conversation since the weekend, and it's been a great working relationship to make sure that we're doing the jobs that people elected us to do. and i cannot thank the president enough for his personal concern
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and compassion for our state and for the people of our state, and i heard it on the phone conversations with him, and i rsonally, and so state today government is here, we're doing what we need to do, coordinating with fema and i thank you mr. fugate for being here and helping our operation even better and we will move on from here. what i said yesterday i really mean. there has got to be sorrow and you see that and the president's seen that today, in the eyes and the faces of a lot of the folks he's met and that sorrow is appropriate. we've suffered some loss. luckily we haven't suffered that much loss of life and we thank god for that but we have suffered losses and this is the worst storm that i've seen in my lifetime in this state, but we cannot permit that sorrow to replace the resilience i know all new jerseyians have so we will get up and we'll get this thing rebuilt and we'll put things back together, because that's what this state is all about and always has been all
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about, and so for all of you who are here and i met a bunch of you today at brigantine who d disregarded my admonition to get the hell out of here. you are forgiven this time but not for much longer. we have to make sure when all of you see all this destruction that's fine but you know what? all that stuff can be replaced. you look to your right and to your left, to your husband or wife, your son or your daughter, those are the things that can't be replaced so i'm glad we don't have that loss of life to deal with. i want to thank you for being here today, for bringing personal attention to it and it's my honor to introduce to all of you the president of the united states. >> appreciate you. thank you. thank you, everybody. let me just make sure that i acknowledge the folks who are here, because they've played an important role in this. first of all, your congressional delegation, senator menendez,
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lawsuitenberg, congressman frank lobiondo, den add levinson and brigantine mayor philip gunther, obviously is a federal, state and local effort, and the first thing i want to do is thank everybody who has been involved in the entire rescue and recovery process. at the top of my list i have to say that governor christie throughout this process has been responsive. he has been aggressive in making sure that the state got out in front of this incredible storm and i think the people of new jersey recognize that he has put his heart and soul into making sure that the people of new jersey bounce back even stronger than before. so i just want to thank him for his extraordinary leadership and partnership. i want to thank the congressional delegation because part of the reason we're going to be able to respond quickly to all this is because they helped
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to make sure that fema financing was in place, and we're very appreciative of those efforts, and i want to thank craig fugate. sometimes you know, people just think fema and they don't think the people behind them but craig lives and breathes this stuff, making sure that we're providing the help that people so desperately need in these situations. i want to thank all the first responders who have been involved in this process, the linesmen, the firefighters, the folks who were in here shoveling out people who were supposed to get the hell out and didn't. you know, you've helped to save a lot of lives and a lot of property, and you know, one thing you learn in these tragedies is the first responders, keep in mind their homes usually are underwater, too or their families have been affected in some way, and yet they make those personal sacrifices to help other people
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so we really appreciate them. i'm just going to make a couple of comments. number one, and most important, our hearts go out to the families who have lost loved ones. it's true that because of some good preparation, the loss of life was kept lower than it might have been, but for those individual families, obviously their world has been torn apart, and we need to make sure that everybody who has lost a loved one knows they're in our thoughts and prayers and i speak for the whole country there. for those like the people i just had the chance to meet on this block and throughout new jersey and throughout the region whose lives have been up-ended, my second message is, we are here for you, and we will not forget. we will follow up to make sure that you get all the help that you need until you've rebuilt. at this point, our main focus is
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on the states of new jersey, which got hit harder than anybody, the state of new york, particularly lower manhattan and long island. we are very concerned about some situations in connecticut as well, and we're still monitoring west virginia, where there are heavy snows in some inaccessible areas, but for the most part, those four states are really bearing the brunt of this incredible storm. what we've been able to do is to preposition and stage commodities, water, power generators, ambulances in some cases, food, medical supplies, emergency supplies, and we have over 2,000 fema personnel that are on the ground right now. their job, now that we're moving out of the search and rescue phase, is to make sure that they are going out and talking to
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individual communities so that people know exactly how they can get the help that they need. we expedited our emergency declarations for the state of new jersey and local counties that have been affected. what that means is that people can immediately start registering for emergency assistance, and one of the things i want to emphasize to the people of new jersey and throughout the region, now that you're safe, your family's safe, but you're trying to figure out where you're going to stay for the next couple of days, et cetera, it's very important that you know that there is help available to you right now. for example, to find rental housing or to be able to pay for some groceries, over at the community center we saw a young woman who had a newborn or i guess probably an 8-month-old still needs diapers and formula and has run out. those are the kinds of basic help and supplies that we can
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help to provide. if you call 800-621-fema, 800-621-fema, or if you've got access to the internet, you can go to, that allows you to register so you can immediately start receiving help. we want to make sure you have everything that you need. couple of final points. obviously our biggest priority is getting power turned back on. we're pleased newark got power yesterday, jersey city is getting power we believe today but there are still big chunks of the community, including this community right here that don't have power, and so it's hard enough cleaning up debris and dealing with boats that have been up-ended and roads that are blocked when people don't have power, they're disabled in all sorts of ways and it's hard to get back to normal, so yesterday
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i had a chance to speak to the ceos of the utilities from all across the country, and a lot of the states that were spared, that were not hard hit or some states as far away as california, they have pledged to start getting equipment, crews, et cetera, here into new jersey and new york and connecticut as quickly as possible, and one of the things that we've been able to do, just to give you a sense of how this is an all hands on deck approach, we're able to get c-17s and c-130s, military transport planes potentially to move assets, personnel to speed up the process of getting power up and running as soon as possible. our first priority is, you know, water filtration plants and some other critical infrastructure in the state. for that, we've got emergency
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generators. we've got a navy ship that has some helicopters that can help to move assets around the state as well, and so we're going to be working with governor christie's office and local officials to identify what are those critical infrastructures, how can we get what's needed as quickly as possible. just a couple other things that we're concerned about. one is, as power starts coming back on, we want to make sure that people can also geto work. obviously there are a lot of folks in jersey who work in new york, in the city, and in other places where transportation may be hobbled. one of the things i mentioned to the governor is the possibility of usassets, military assets as well as taking inventory of assets from around the country that can be brought in so we can help people get to their work, and governor christie also mentioned the importance of schools. the sooner we can get our kids
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back into school, the sooner they're back into a routine, that obviously helps the families and helps the kids as well. so we're going to have a lot of work to do. i don't want anybody to to do. i don't want anybody to feel that somehow this is all going to get cleaned overnight. we want to make sure that people have realistic expectations. but what i can promise you is that the federal government will be working, as closely as possible with the state and local officials and we will not quit until this is done. and the directive i have given and i said this yesterday but i will repeat. i think craig and others working with me right now know i mean it, we're not going to tolerate red tape or bureaucracy. i instituted a 15-minute rule on my team. you return everybody's phone calls in 15 minutes, whether it's the mayors, governors, county officials. if they need something we figure out a way to say yes. you know, as i was just
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gathering around, i had a chance to talk to some of the young people here who have been volunteering, going up and down the block, cleaning up debris. and when we were over at the community center, there was a restaurant owner who for the last 18 hours had been cooking meals as his contribution to the recovery process and some of the folks were saying the food was better than they got at home. you know, you had a 15-year-old young man whose mother was disabled and he was making sure that she was okay. and taking on extra ordinary responsibilities for himself and also for his mom. when you see folks like that respond with strength and resilience, when you see neighbors helping neighbors, then you're reminded about what america is all about. we go through tough times.
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but we bounce back. the reason we bounce back is because we look out for one another. and we don't leave anybody behind. so my commitment to the people on this block, the people of this community and the people of this state is that that same spirit will carry over all the way through until our work is done. all right? thank you very much everybody. [ applause ] >> president obama with governor chris christie in new jersey today making comments about hurricane sandy and the recovery effort. let me bring in john harwood in washington to talk more about the president's comments. john, interesting to see two unlikely politicians very much on the same page on this issue right now. >> exactly. as chris christie said, maria, first and foremost it was two elected officials doing the jobs they were elected to do. so in some sense the president simply performing as citizens
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would want him to. on the other hand, for all the tens of millions of dollars being spent on television advertising in this final week of the election campaign, it is absolutely priceless for him to be standing there with the keynote speaker at the republican national convention against him. and to have chris christie say the president shows compassion, concern for our state and functioning at a high level. the president emphasized that 15-minute rule. he's going to return phone calls, cut through red tape. all of that can only help the president. don't know how much as he prepares for reelection next week. it can't hurt and will probably do him some good. >> i don't want to be skeptical. but how much do you think this partnership today in front of the cameras for all of us is worth for the state of new jersey? somebody mentioned to me this could mean $100 million for chriss chrissie's state? >> i think new jersey will be
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treated well by the disaster relief process. so will new york for that matter. for chris christie it makes sense for him to do everything he possibly can to make sure his state gets pack on its feet as soon as possible. >> absolutely. that's what we're seeing here. i wonder, when the money starts coming in. any estimates from your standpoint in terms of i just asked tom wilson, when are the checks going to be written? people need money, they need help right now. >> i think that process can be expedited and will be expedited no the maximum extent possible. i suspect it won't be more than a couple of days before that happens. >> all right. john, thanks so much. john harwood, outside the white house today on the heels of president obama and dpof chris christie's remarks on hurricane sandy. all street gets back to business in the wake of hurricane sandy. stay with us.
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herb greenberg on the latest with mr. icon. >> that's right. as much as 20% before backing off on news that carl icon has taken a stake in the company. that's a put and call transaction, not the actual shares. it's the results of buying shares since the puts and calls. microsoft would buy the company. what bush analyst michael packter. i was told that the purchase quote, i think eye can has lost his mind. wonder who would or should buy netflix. the only company that remotely makes sense would be amazon. then again would amazon or any buyer want to pay a price inflated by iek an's filing. it was taking control. as you know, maria, we all know, turned into a big losing bet for him. back to you. >> what do you think? is this going to turn into a takeover attempt?
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what's your take on this? >> it seems like he's trying to push for something. the fact that it's -- again, he's using options do this deal. it creates a lower -- on one hand it creates sort of a highly margin deal if it goes right. i don't know what's behind that part of the transaction. people should pay attention to that. >> we'll leave it there. we'll be watching netflix tomorrow. look at the day on wall street. the big issue was getting business back on track today. clearly, that happened successfully. take a look at how we finished the day. the dow jones down about 10.75. a lot of repositioning which will likely continue through the week. particularly tomorrow shall the first day of the new month. the nasdaq down about ten points. 10.75 points. the s&p up a fraction. real slight moves today. volume actually picked up today. we were expecting light volume, but take a look at the volume at the new york sto
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